Ensure that you have 32-bit Microsoft Office 2007 or 2010. Flir Reporter is not compatible with the 64-bit editions of Office. You can use 32-bit Office with 64-bit Windows.
If you have 32-bit Office but still get the error please check the following:
1. Make sure that you are not using "Office Starter" edition. This does not support add-ins: http://office.microsoft.com/en-us/starter-help/word-features-that-are-not-fully-supported-in-word-starter-HA010374498.aspx.
2. Office 2010 has a "Click-To-Run" option, which is a virtualized version of Office. Since it is not installed locally Reporter cannot add-in properly.